Palmer Square brings second 2015 CLO reprint; Wellfleet prices refinancing of notes

By Cristal Cody

Tupelo, Miss., June 11 – The CLO refinancing space has been active in May and June with details out on two 2015 reprint transactions.

Palmer Square Capital Management LLC priced $666.9 million of notes in a second refinancing of a CLO that was first refinanced in 2017.

Wellfleet Credit Partners, LLC sold $324.63 million of notes in a third refinancing of a 2015 deal. The CLO was partially refinanced in 2017 and in 2018.

More than $17 billion of vintage CLOs have been refinanced, reissued or reset year to date, according to market sources.

Palmer Square prices CLO

Palmer Square Capital Management priced $666.9 million of Rule 144A and Regulation S global notes due May 21, 2029 in a second refinancing of a vintage 2015 transaction, according to a market source and a notice of revised proposed supplemental indenture on Monday.

Palmer Square CLO 2015-1 Ltd./Palmer Square CLO 2015-1, LLC sold $457 million of class A-1-R2 senior secured floating-rate notes at Libor plus 122 basis points at the top of the capital stack.

J.P. Morgan Securities LLC was the refinancing placement agent.

The original CLO was issued May 21, 2015 and was first refinanced May 22, 2017.

In the original $435.8 million offering, the CLO priced $263.8 million of class A-1 senior secured floating-rate notes at Libor plus 150 bps.

In the first refinancing, the CLO sold $457 million of class A-1-R notes at Libor plus 130 bps.

Proceeds will be used to redeem the outstanding notes on June 17.

The CLO is backed primarily by broadly syndicated first-lien senior secured corporate loans.

Palmer Square Capital is an investment management firm based in Leawood, Kan.

Wellfleet reprices

Wellfleet Credit Partners sold $324,625,000 of notes due July 20, 2029 at par in a third refinancing of the vintage 2015 CLO offering, according to market sources.

Wellfleet CLO 2015-1, Ltd./Wellfleet CLO 2015-1 LLC priced $225.75 million of class A-R3 senior secured floating-rate notes at Libor plus 128 bps in the senior tranche.

Morgan Stanley & Co. LLC was the refinancing placement agent.

Wellfleet originally issued the notes on Sept. 24, 2015. The CLO was partially refinanced on Oct. 20, 2017 and partially refinanced on Oct. 22, 2018.

In the debut $360 million transaction priced in 2015, the CLO sold $215 million of class A-1 floating-rate notes at Libor plus 165 bps and $9 million of 3.29% class A-2 fixed-rate notes.

Proceeds were used to redeem the outstanding notes.

The CLO is collateralized primarily by broadly syndicated first-lien senior secured loans.

Wellfleet Credit Partners has priced one new CLO and one refinanced CLO year to date.

In 2018, the CLO manager brought three CLO transactions to the primary market.

The Greenwich, Conn.-based performing credit arm was created in 2015 by private investment firm Littlejohn & Co., LLC.

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